Will Federalism Address PH Woes - Pros and Cons of Making The Shift

4/6/2017 WillfederalismaddressPHwoes?
Prosandconsofmakingtheshift
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Will federalism address PH woes? Pros and cons of making the

shift
At least 3 presidential and vice presidential candidates in 2016 are pushing for a change in the Philippine system
of government
Pia Ranada and Nico Villarete

Published 9:30 AM, January 31, 2016
Updated 2:18 AM, February 01, 2016
Some candidates in the 2016 national elections have been vocal about their support for federalism.
http://www.rappler.com/nation/politics/elections/2016/120166federalismprosconsexplainer 1/12
4/6/2017 WillfederalismaddressPHwoes?Prosandconsofmakingtheshift
Presidential candidate Rodrigo Duterte, and vice presidential bets Alan Peter Cayetano (his running mate) and

Ferdinand "Bongbong" Marcos Jr, in particular, have been championing it.
Supporters of federalism say it will evenly distribute wealth across the country instead of the bulk going to
"imperial" Manila. Detractors, like presidential candidate Grace Poe, say it will further entrench political dynasties
in the regions and create confusion over responsibilities.
Read on to nd out more about federalism and its perceived advantages and disadvantages.
What is federalism?
It is a form of government where sovereignty is constitutionally shared between a central governing authority and
constituent political units called states or regions.
In basic terms, it will break the country into autonomous regions with a national government focused only on
interests with nationwide bearing: foreign policy and defense, for example.
The autonomous regions or states, divided further into local government units, will have primary responsibility
over developing their industries, public safety, education, healthcare, transportation, recreation, and culture. These
states will have more power over their nances, development plans, and laws exclusive to ther jurisdiction.
The central government and states can also share certain powers.
How is it different from what we have now?
We presently have a unitary form of government. Most administrative powers and resources are with the national
government based in Metro Manila. It's Malacaang that decides how much to give local government units. The
process is prone to abuse, with governors and mayors sometimes having to beg Malacaang for projects they
believe their communities need.
How local government units spend their budget has to be approved by the national government.
In federalism, the states will have the power to make these decisions with little or no interference from the
national government.
Examples of federal countries: United States, Canada, Australia, Brazil, India, Malaysia.
PROS

Locals decide for themselves. Regions have their own unique problems, situations,
geographic, cultural, social and economic contexts. Federalism allows them to create solutions
to their own problems instead of distant Metro Manila deciding for them.
The states can establish policies that may not be adopted nationwide. For example, liberal
Metro Manila can allow same-sex marriage which the state of Bangsamoro, predominantly
Muslim, would not allow. In the United States, some states like Colorado and Washington have legalized
recreational marijuana even if other states have not.
This makes sense in an archipelago of over 7,000 islands and 28 dominant ethnic groups. For decades, the
national government has been struggling to address the concerns of 79 (now 81) provinces despite challenges
posed by geography and cultural differences.
With national government, and thus power, centered in Metro Manila, it's no surprise that development in the mega
city has spiralled out of control while other parts of the country are neglected.
More power over funds, resources. Right now, local government units can only
collect real estate tax and business permit fees. In federalism, they can retain more of their
income and are required to turn over only a portion to the state government they fall under.
Thus, local governments and state governments can channel their own funds toward their own
development instead of the bulk of the money going to the national government. They can
spend the money on programs and policies they see t without waiting for the national government's go signal.
Promotes specialization. The national and state governments can specialize in

different policy domains. With most administrative powers now with the regional governments,
the national government can focus on foreign policy, defense, and other nationwide concerns,
like healthcare and taxation.
States have more autonomy to focus on economic development using their core competencies
and industries. The state of Central Luzon can focus on becoming an agricultural hub. The state of Mimaropa,
home to Palawan, can choose to use eco-tourism as its primary launch pad.
Possible solution to the Mindanao conict. The creation of the state of

Bangsamoro within a federalist system may address concerns of separatists who crave more
autonomy over the administration of Muslim Mindanao.
Decongestion of Metro Manila. Through scal autonomy for state governments,

federalism will more evenly distribute the country's wealth. In 2015, 35% of the national budget
went to Metro Manila even if it represents only 14% of the Philippine population.

Lessens dependence on Metro Manila. When there is political upheaval in Metro

Manila, other regions that have nothing to do with the chain of events are left waiting for the
resources that ony the national government can release. With federalism, regions work
independently of Metro Manila for most concerns.
Brings government closer to the people. If detractors say federalism will only make
local political dynasties more powerful, supporters give the argument that, in fact, it will make
all local leaders, including those part of political dynasties, more accountable to their
constituents. State governments will no longer have any excuse for delays in services or
projects that, in the present situation, are often blamed on choking bureaucracy in Manila.
Assuming more autonomy for regions leads to economic development, there will be more incentive for Filipinos to
live and work in regions outside Metro Manila. More investors may also decide to put up their businesses there,
creating more jobs and opportunities to attract more people away from the jam-packed mega city.
Encourages competition. With states now more self-reliant and in control of their
development, they will judge themselves relative to how their fellow states are progressing. The
competitive spirit will hopefully motivate state leaders and citizens to level up in terms of
quality of life, economic development, progressive policies, and governance.
CONS
Possibly divisive. Healthy competition among states can become alienating creating
rivalries and promoting the regionalism that some say already challenges the sense of unity in
the country. It could en ame hostilities between ethnic groups in the country like Tagalogs,
Cebuanos, Bicolanos, Ilocanos, Tausugs, and Zamboangueos.
Uneven development among states. Some states may not be as

ready for autonomy as others. Some states may not be as rich in natural
resources or skilled labor as others. States with good leaders will progress
faster while states with ineffective ones will degrade more than ever
because national government will not be there to balance them out.
But in some federal countries, the national government doles out funds to help poorer states. A proposed
Equalization Fund will use a portion of tax from rich states to be given to poorer states.
Confusing overlaps in jurisdiction. Where does the responsibility of state

governments end and where does the responsibility of the national government begin? Unless
these are very clearly stated in the amended Constitution, ambiguities may arise, leading to
con ict and confusion. For instance, in times of disaster, what is the division of responsibilities
between state and national governments?
May not satisfy separatists in Mindanao. Separatists are calling for their own
country, not just a state that still belongs to a larger federal Philippines. Federalism may not be
enough for them. After all, the con ict continues despite the creation of the Autonomous
Region in Muslim Mindanao.
How the Philippines would look when federal
In some proposals, there will be 10 or 11 autonomous states. Senator Aquilino Pimentel Jr envisioned 11 states
plus the Federal Administrative Region of Metro Manila.
Here's how the Philippines will look like as laid out in Pimentel's 2008 Joint Resolution Number 10.
Cost of federalism
Shifting to federalism won't come cheap. It would entail billions of pesos to set up state governments and the
delivery of state services. States will then have to spend for the elections of their of cials.
Attempts at federalism in PH
There was an attempt during the administration of President Gloria Macapagal Arroyo. One of her campaign

promises was to reform the 1987 Constitution.
A consultative commission she created recommended federalism as one of the goals of the proposed charter
change. But the attempt failed because of opposition from various sectors who believed Arroyo wanted to use the
reform to extend her term limit.
(Note that shifting to a federal government does not necessarily mean an extension of term limits for the sitting
president. Such an extension would only take place in a shift to a parliamentary government.)
In 2008, Pimentel Jr and Bacolod City Representative Monico Puentevella led joint resolutions to convene
Congress into a constituent assembly with the goal of amending the constitution to establish a federal form of
government. Rappler.com
Who won in the 2016 Philippine elections?
Check out the 2016 of cial election results through the link below:
2016 of cial election results for Presidential, Vice Presidential, Senatorial, and Party list
elections
Check out the 2016 unof cial election results for the national and local races through the links below
2016 Philippine Presidential Elections

2016 Philippine Vice Presidential Elections
2016 Philippine Senatorial Elections
2016 Philippine Congressional Elections
2016 Party List Elections
2016 Philippine Local Elections
For live updates on the aftermath of the May 9 elections, check out our extensive 2016
Philippine elections coverage!
We are agents of change! Join us in our mission to make our country truly wonderful. Learn more about Sustainability with Globe
through #WonderfulPH.
7-Election is the fun way to vote. Show your support and go to any 7-Eleven stores and cast your GULP. Visit our website and be
updated on the latest tally of the presidential Gulp.
#HalagaNgBotoMo is a campaign that encourages Filipinos to vote wisely during the 2016 National Elections. This emphasizes that
the power to affect change and progress comes with being an informed voter, not a paid one.
BUSINESS
Housing prices outside Metro Manila still rising

Condominium units are the most commonly purchased in the National Capital Region, while single detached
houses are dominant in the provinces
Rappler.com
Published 11:30 PM, April 02, 2017
Updated 11:30 PM, April 02, 2017
LEVELING OUT. Philippine residential real estate prices slow in the 2nd half of 2016 compared to the January-June period which
averaged almost 10% price growth for both areas in Metro Manila and outside Metro Manila. File photo from Shutterstock
MANILA, Philippines Rates to purchase houses in the Philippines continued to rise in the last quarter of 2016,
latest data from the Bangko Sentral ng Pilipinas (BSP) showed, with costs outside the National Capital Region
(NCR) outweighing the decline in prices in the metro.
BSP data released on Saturday, April 1, showed housing prices slightly increased by 0.3% nationwide in October-
December 2016 compared to the year before that.
The central bank's Residential Real Estate Price Index (RREPI) measures the average change in the prices of
housing units across building types and locations, allowing regulators to monitor real estate and market
conditions. This is an indicator of nancial soundness as identi ed by the International Monetary Fund. (READ:
Megaworld to complete Visayas BPO Triangle by 2019)
While there was a slight year-on-year growth in residential real estate prices, the BSP said this was slower

compared to the 2.2% increase registered in the 3rd quarter of 2016.
The central bank attributed the slight increase to the 1.7% growth in average residential prices outside Metro
Manila. (READ: Smart things to know about Philippine real estate)
This outweighed "the decline in prices in NCR by 1.1%" in the 4th quarter of 2016, the BSP said.
Housing loans remain in demand
Demand for housing loans also increased alongside housing prices. For the 4th quarter of 2016, about 7 in 10 real
estate loans or 70.5% were for the purchase of new housing units.
The majority of these loans were for condominium units at 48.1%, followed by single detached units at 43.9% and
then townhouses at 7.6%.
All types of housing units registered increases in the number of loans granted compared to their year-ago levels,
with condominium units posting the highest growth of 37%.
The BSP report also showed that condominium units were the most common house purchases in Metro Manila
while single detached houses were dominant in areas outside NCR.
By region, Metro Manila accounted for 51.6% of the total number of residential real estate loans granted during
the quarter, followed by Calabarzon (25.6%), Central Luzon (5.8%), Central Visayas (4.7%), Western Visayas (3.9%),
Davao Region (3.8%), and Northern Mindanao (1.5%).
Together, these 7 regions accounted for 96.9% of total housing loans granted by banks.
The BSP also noted that these 7 regions as well as Soccsksargen and the Cordillera Administrative Region (CAR)
showed a generally increasing trend in the number of loans granted since the 2nd quarter of 2015.
The RREPI measures the average change in prices of various types of housing units covering single
detached/attached houses, duplex units, condominium units, and townhouses based on data from housing loans
granted by banks.
The central bank uses the index to monitor prices and detect risks stemming from the real estate market. It said
at the start of 2016 that stress tests showed no signs of a housing bubble forming. Rappler.com

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Will Federalism Address PH Woes - Pros and Cons of Making The Shift

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4/6/2017 WillfederalismaddressPHwoes?

Will federalism address PH woes? Pros and cons of making the

Pia Ranada and Nico Villarete

How is it different from what we have now?

Promotes specialization. The national and state governments can specialize in

Possible solution to the Mindanao conict. The creation of the state of

Decongestion of Metro Manila. Through scal autonomy for state governments,

Lessens dependence on Metro Manila. When there is political upheaval in Metro

Uneven development among states. Some states may not be as

Confusing overlaps in jurisdiction. Where does the responsibility of state

How the Philippines would look when federal

Who won in the 2016 Philippine elections?

2016 Philippine Presidential Elections

Housing prices outside Metro Manila still rising

Housing loans remain in demand

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